RV and Cargo Trailer Sales - Nonresident Sales Tax Exemption
The purchase of a recreational vehicle or cargo trailer (as defined in I.C. 6-2.5-5-39) by a nonresident, to be registered and/or titled outside Indiana will be afforded an exemption if the state where the vehicle is to be registered allows a similar exemption to an Indiana resident.
Effective July 1, 2017, IC 6-2.5-2-4 provides that sales to nonresidents of jurisdictions where a similar exemption to an Indiana resident is not permitted may be charged the sales tax rate of the nonresident’s jurisdiction. However, to be charged a rate other than Indiana’s 7% sales tax rate, the purchaser and seller must complete a form ST-108NR and comply with the terms listed in the form.
The Department of Revenue has developed a ST-137RV form and a ST-108NR form for dealers.
The dealer must keep a copy of the ST-137RV or ST-108NR to document the exempt RV or cargo trailer sale to a nonresident. The ST-137RV and ST-108NR forms contain an affidavit the buyer and dealer must sign.
For more detailed information please access the Sales Tax Exemption for RV’s & Cargo Trailers FAQs or Sales Tax Information Bulletin #72.
Note: The ST-137RV exemption form is only applicable to a sale to a nonresident where the nonresident takes delivery (possession) within Indiana. Note exceptions for certain nonresidents as indicated on the form.
If the RV or trailer is delivered by the dealer or the dealer hires a 3rd party carrier to deliver to a point outside of Indiana, as a condition of the purchase agreement, the ST-137RV exemption is not applicable.